Absa Agri Trends Report – 7 September 2018

SA’s GDP shrinks further in the 2nd quarter of 2018

 

The real Gross Domestic Product in the first and second quarter of 2018 decreased respectively by 2.6% and 0.7%. However, the GDP at market prices increased year on year in the first quarter by 0.8% and in the second quarter by 0,4%. While the average GDP growth year on year equals 0,6% the growth rate for agriculture turned negative with a growth rate of -3,2% in Q1 and -5.8% in Q2. Measured on a year on year basis South Africa’s GDP growth is still positive but the growth in agriculture turned negative year on year in the first semester for 2018.

Read more: Absa Agri Trends Report – 7 September 2018
 

Agbiz/IDC Agribusiness Confidence Index falls below the 50-point mark

10 September 2018

 

After being sustained at levels above 50-point mark in the past two quarters, the Agbiz/IDC Agribusiness Confidence Index declined by 6 points to 48 in the third quarter of 2018. This is the lowest level since the second quarter of 2016, which was a drought year.

With the results now below the neutral 50-point mark, this essentially means that the agribusinesses are somewhat downbeat about business conditions in South Africa. The survey was conducted in August 2018 and comprised agribusinesses operating in all agricultural subsectors across South Africa.

Read more: Agbiz/IDC Agribusiness Confidence Index falls below the 50-point mark
 

Absa Agri Trends Report – 27 Julie 2018

Beef prices are at high levels, which add a bearish tone on consumption prospects

Consumption of beef has remained stagnant and only showed modest gains over the past 4 to 5 years. Higher prices are paid to beef in relation to other meat proteins. In general, people tend to increase meat consumption when they have more disposable income. As it stands, the South African economy is growing only modesty, and consumers remain under pressure. Yesterday, the reserve bank lowered South Africa’s growth rate for 2018. The bank indicated that GDP is expected to expand 1.2% in 2018, lower than the previous estimate of 1.7%.

Read more: Absa Agri Trends Report – 27 Julie 2018
 

South Africa has room for small and big farms

SA needs both big and small farms as they all serve society in different ways 

Click here to read the full article 

 

Venter, Crosby discuss land issue at workshop

The parliamentary decision to proceed with the process of amending Section 25 of the Constitution, to provide for land expropriation without compensation, has made headlines in South Africa.

That is why Prof Johan Willemse's next agricultural market workshop, which takes place in Bloemfontein on 13 April 2018, focuses on land issues and this will be discussed by several experts. Theo Venter, political analyst of the North-West University, and Annelize Crosby, Head of Agri SA's Centre for Excellence on Land, will be the guest speakers.

Read more: Venter, Crosby discuss land issue at workshop
 

Absa Agri Trends Report – 9 March 2018

Holy Guacamole! You had me at “Avocado”

The demand for avocado outstrips the ability of the industry to ramp up production and to meet the global demand with sufficient supply.  The lack of sufficient breeding stock underpins the price levels for avocado. This trend will most likely support a growing market, which encourages growers to invest in expanding production.  However, agricultural land with sufficient water that meets the requirements for high yields and delivery during the best priced marketing windows overseas is limited.  Forestry land under Bloekom production and fields under sugar cane falls prey to new developments and the establishment of avocado orchards increase in both the Eastern and Western Cape provinces.  South Africa grows about 17 500ha of avocados.  The 2015/2016 drought negatively affected avocado yields in 2017, which resulted in lower-than-average production levels. Moreover, as 2017 was an off-season, which usually tends to deliver lower yields, production declined even further. Harvesting for the current season just started. It will be an interesting season to track and see if actual exports for 2018 meet the expectations of the avocado industry.

Click here for the Absa Agri Trends Report.

 

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